Going to market through distributors widens your reach and increases your potential target market while cutting down on delivery time. However, distributors are middlemen who earn their livelihood by taking a cut of each transaction, so you will generate less revenue for each unit you sell. In order to develop a successful business model based on sales through distributors, your margins must be sufficient for you to earn a profit even after you mark down the price for the distributor. In addition, you must be able to amp up production to generate economies of scale and sell a larger quantity of products at a lower margin.

Step 1

Prepare marketing informational and support materials for your product. These materials will be an essential tool for convincing a distributor to carry your product. Going to market through a distributor involves two layers of marketing: appealing to the distributor to carry your offerings and showcase them prominently enough for customers to notice them, and appealing to customers directly by providing informational support materials, building an informative website and advertising through appropriate media. Informational materials geared toward the distributor should include information about wholesale prices and delivery schedules. Marketing materials for customers should include selling points and educational information about how your product will benefit them.

Step 2

Call distributors in your area who carry products comparable to yours. Learn about potential distributors by visiting stores and speaking to store representatives who work in the department where your product will be sold. Make appointments with distributor purchasing managers and bring samples of your product. Tailor your presentation to engage the purchasing manager through a variety of senses. For example, if you are presenting a food product, bring labels for him to see and samples for him to taste, and if you are presenting a line of clothing, bring photographs of models wearing your products as well as samples so he can touch the fabric.

Step 3

Negotiate prices and terms for selling your product through distributors who are interested in carrying it. If you have an established product and have already created a demand for it, then you will be in an advantageous position to ask a distributor for advantageous terms such as rapid payment or a low markup to customers.

Step 4

Fill your distributor's initial orders. A distributor will be able to make an educated guess about how much to order as a starting place. However, an initial order is of necessity a guess. Be prepared for the possibility that your ongoing sales volume may diverge considerably from your initial order. Offer to put your product on sale by reducing the price you charge to the distributor for the first month it is available in order to encourage new customers to try it.